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Verizon Wireless Confirms $350 ETF for Premium Devices

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Lies and Deception!

Slammer

Nov 5, 2009, 8:11 AM
Can anyone answer how a 350 dollar ETF can give me more choices? 😕

These carriers have fed off ignorance for way too long.

It is funny how this starts a week after the self-fabricated hype of the Droid and with a slew of other VZW devices coming out. I'm not dissing on VZW only. This seems all too familiar in the wireless world. Nobody knows how to keep clientele, so they lock them in.

This is why I hate exclusivity. It does not implement innovation. It only triggers greed, lies and deceit.
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jundibasam

Nov 5, 2009, 9:15 AM
I personally don't see anything wrong with what Verizon is doing. What you people don't realize is that Verizon subsidizes about $300 of the price of a Smartphone, and it takes about 9-11 months of service on average after an equipment subsidy for them to become profitable. Its been widely reported that with all of the subsidies AT&T pays for the iphone, they don't actually become profitable until 18-20 months into the purchase.

Also, ironically, the BOGO offers were contributing to increased churn. With all of the Buy One Get One Free promotions Verizon has offered, I read that played a big part into this decision by Verizon. They said it was estimated that a decent percentage of these customers were taking advantage of this and selling...
(continues)
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flagrantmisuse

Nov 5, 2009, 9:25 AM
you're right. it's consumerism that's to blame for the actions that big companies make. as an american i want what i want, when i want it and i want it free. so yeah att and vzw get their equipment from the manufacturer for a cheaper price since they buy in bulk but they also pay them to brand their device to their network. not cheap. when they sell a phone (or in a lot of cases) give it away, they eat a lot of money. it costs att an estimated 450.00 everytime we activate a new subscriber. why not for high end device, increase the etf. it will help them decrease churn and a customer will think twice before cancelling and selling their phone on ebay.
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jundibasam

Nov 5, 2009, 9:31 AM
couldn't have said it better myself. People are so big to blame big companies for increased prices/fees but fail to look at consumers who take advantage of "the system" that force companies to raise prices to make up for it. I read from CNN that Verizon estimated between 15-25% of new line additions through BOGO promos were selling the phones and canceling the new line, which was the leading reason in VZW doing this.
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flagrantmisuse

Nov 5, 2009, 9:36 AM
i don't blame verizon at all for this. i just hope att follows suit. it will make my job much easier.
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Versed

Nov 5, 2009, 11:41 AM
Churn is freedom, being tied to a carrier is not good, yes, I accept a reasonable etf. But $350 is beyond the pale.

American are little different then other people, problem being here is there is cdma and gsm, and the cdma carriers lock their systems down tighter then Guantanamo Bay.

Tell me VZW excellent bullet proof system (and I freely admit they have one good network) is going to crash if someone activates a Sprint phone on it? Oh Please. And vice versa. Funny how that crappy ATT and TMO network can easily handle each others or unlocked unbranded phones without problems?
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flagrantmisuse

Nov 5, 2009, 11:50 AM
churn is not freedom. it's bad for business. if it were a perfect world and everyone was responsible for buying their own equipment and let service providers be strictly service providers, that would be fantastic. but the fact of the matter is we live in america that has a government that regulates everything and a populace that wants everything handed to them dont want to pay for a phone. so we offer discounts with a contract. until we have legitimate freedom. suck it up.
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Azeron

Nov 5, 2009, 3:00 PM
Here here! Let's give every citizen the RIGHT to buy his own phone with no subsidy and no evil contract. Wait! Verizon already does! Go Month-to Month!
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Versed

Nov 5, 2009, 3:13 PM
They all do month to month, and I have no problem whatsoever paying outright for the phone OR, going to another avenue to get a phone. Done it in the past and will do it in the future.
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flagrantmisuse

Nov 6, 2009, 9:12 AM
that's all fine and good for guys and gals like us who make it a point to be educated and make good decisions about wireless service. but as we all know most consumers are impulsive and think they deserve a discount because of their "loyalty and tenure". but we all know that once the new-hottness comes out they will forget their loyalty for the biggest discount.
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flagrantmisuse

Nov 6, 2009, 9:13 AM
i apologize, i'm negative this morning.
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Overmann

Nov 5, 2009, 11:53 AM
CDMA and GSM are designed very differently. CDMA is locked tighter than Guantanamo Bay because it was originally designed to be secure. It just has a disadvantage of possibly being very cranky when you force a phone onto a carrier's network that it wasn't programmed to communicate with.

GSM (ATT, T-Mo) was designed to be very open, and therefore it is easier to set up a device to work with. It also costs less because Qualcomm doesn't hog the patents. It is not as secure or as stable as CDMA, however.

All a moot point soon, as LTE takes the best of both worlds and sets up new technology with those ideals.
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Azeron

Nov 5, 2009, 2:51 PM
If you think the ETF is too high, that is an indication that it is just right actually. If the ETF does not discourage cancellations then what is the point. Carriers don't make money of handsets; Why should consumers? If you honor the contract the ETF will never affect you anyway. The other option is to pay full retail for the handset and not have to sign a contract or worry about an ETF. I recommend the latter option.
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bp3dots1

Nov 6, 2009, 9:36 AM
Versed, you have a totally free option, PREPAID.

How people can fail to understand that people who sign contracts which state, that "in return for giving you this (model x) for $400 off the retail price, you agree to keep our service for 24 months. Or we will charge you Y amount to recover some of our cost" is beyond me.

As for the bottom of your post, while I agree that it would be sweet to be able to move CDMA phones around like GSM ones, ultimately it is up to the carrier to decide what devices they will allow. We use their networks, we play by their rules. Pretty simple. And, of course, if you dont like those rules, find a different carrier that better suits what you need. (Just hope you didnt sign that contract first! 🤣 )
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Azeron

Nov 5, 2009, 2:44 PM
This is the model which I advocate. No subsidy. No contract.
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